Liquor stocks surge up to 14% after Patna HC ruling

High Court has quashed the Bihar govt notification completely banning liquor in the state, saying it is ultra vires to the Constitution

Liquor stocks on Friday surged up to 14 per cent after the Patna High Court struck down the Bihar government's decision to completely ban liquor in the state.

Shares of Empee Distilleries jumped 13.92 per cent, Globus Spirits advanced by 11.47 per cent and Pioneer Distilleries zoomed 9.85 per cent on BSE.

GM Breweries soared 8.42 per cent, Tilaknagar Industries surged 7.83 per cent and Radico Khaitan went up by 6.21 per cent.

Among others, Associated Alcohols & Breweries rose by 3.44 per cent and United Breweries gained 2.81 per cent.

In a setback to the Bihar government, the Patna High Court on Friday quashed the government notification completely banning liquor in the state, saying it is ultra vires to the Constitution.

A division bench of the court quashed the April 5 notification of the state government to stop consumption and sale of alcohol in the state.

The April 5 notification is ultra vires to the Constitution, hence not enforceable, the court said in its verdict.

The Nitish Kumar-led Grand Secular Alliance government had first banned the manufacture, trade, sale, consumption of country-made liquor since April 1, but later imposed a blanket ban on all types of liquor including foreign liquor in the state.